AirDrop issues since updating macOS 26.2 on MacBook Air

My wife and I both have a MacBook Air (2022, M2 chip) and we both have an iPhone 16e. AirDrop has been working fine between both Macs until 12.20.25. we updated to 26.2 on 12.12.25 on Macs and iPhones. Since Saturday we can airdrop between iPhones, from either iPhone to other Mac, from either Mac to either iPhone, from Mac B to Mac A, BUT not from Mac A to Mac B - it displays "No People Found". I spent 10 hours talking to several Apple Senior Advisors on Saturday, I have done all the little and big things suggested and have even completely erased and reinstalled everything on both Macs. All this to no avail. Any suggestions?

[Re-Titled by Moderator]

Original Title: AirDrop issues since OS 26.2